The partnership agreement may stipulate that the management committee or managing partner is responsible for the day-to-day management and control of overheads. Costs can be divided equally between partners or distributed differently according to a predetermined agreement. If you are unevenly distributed, you want to know who decides what your portion will be and how that decision will be made. Partnership agreements are rarely amended, and only when necessary; for example, in the event of a merger with another law firm. If you want to negotiate a point of the partnership position that is proposed to you, for example.B. Their remuneration, it is unlikely that the agreement itself will require changes. If remuneration is discretionary, a remuneration committee in some companies has absolute power over the determination of the amount. The other extreme is that the entire partnership votes each year on the compensation of each partner (called “the night of the long knives”). Some companies don`t publish a partner`s compensation table, so you only know your own compensation, but not others`. In many companies, especially the largest ones, a partnership offer is accompanied by a new partner information package or guidance manual. However, if the information is not available, just ask to see it. To fully evaluate the partnership offer, you must also take into account other “flexible” factors: the main handicap of a paid partner is that you are maintained as an external partner.
In a general trading company, this means that you can still be held responsible for the company`s debt and obligations. As an employee, you therefore want to ensure that the profit-benefit partners will fully compensate you for all debts of the partners or the company. (The social contract usually defines the basis on which partners can compensate other partners or the partnership for commitments.) They should ensure that compensation provisions are flexible enough to allow for any eventuality. “If you have a rigid formula for distributing winnings or bonuses, you don`t know how it`s going to evolve for you as a new partner,” Ferguson says. . . .